Ethereum Layer 2 solutions are taking another L as ENS Labs has scrapped its plans for Namechain, opting to deploy the upgraded ENSv2 protocol directly on Ethereum. The change in plan comes after Ethereum scaling upgrades cut registration gas fees by over 99%, removing the need for a separate chain. Ethereum price is steady around $2,080, and the renewed emphasis on the main chain is reinforcing bullish long-term sentiment among investors.
The move signals a major strategic shift for ENS, echoing Buterin’s view that core infrastructure should stay on Ethereum’s main chain as scaling matures.
Vitalik Buterin did not sugarcoat his stance, suggesting that many current Layer 2 designs could become obsolete as base-layer scaling improves.
ETHEREUM IS PULLING PROTOCOLS BACK TO MAINNET.
ENSv2 just cancelled its L2
and is deploying exclusively on Ethereum L1.Why?
ENS gas costs down ~99% YoY
Fusaka proved the new upgrade cadence works.… https://t.co/nCWpYdyW5t pic.twitter.com/rnxgkvyQAV
— BMNR Bullz (@BMNRBullz) February 7, 2026
EXPLORE: Top 20 Crypto to Buy in 2026
Are Ethereum L2 Solutions Useless? What Pushed ENS To Make This Move
To understand this pivot, think of Ethereum like a congested and very expensive highway. For years, traffic (transactions) was so bad that tolls (gas fees) skyrocketed to $50 just to register a name. ENS originally planned Namechain as a bypass road, a Layer 2 rollup, to divert traffic and lower costs.
But this solution is no longer needed.
ENS lead developer nick.eth explains that recent network upgrades, including the Fusaka update, have expanded the mainnet’s capacity faster than anyone predicted. Data shows a 99% reduction in registration costs compared to last year.
This directly mirrors recent discussions where Vitalik announced the L2 vision no longer aligns with every project’s needs. If the mainnet is cheap and secure, building a complex new chain is solving a problem that no longer exists.
vitalik just softly but definitively buried the 2022–2024 narrative that "l2 will save ethereum"
now it's official: if your rollup doesn't do anything unique beyond scaling > you're just another l1 with a pretty bridge and marketing
2026 = the year l2 either slows down its… https://t.co/aRVsl2KAgU pic.twitter.com/MN4aLrggNl
— malewicz
(@malewiczz) February 3, 2026
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What Changes for ENS Users?
Instead of having to bridge assets to a new network to manage their domains, users can stay on Ethereum mainnet while enjoying the low fees usually reserved for L2s.
The upcoming ENSv2 upgrade focuses on a new registry architecture. It offers improved ownership models and flexibility without the technical headache of moving to a different chain. Nick.eth emphasized that ENS needed to meet users where the ecosystem was heading.
While the network has faced challenges, such as when recent upgrades triggered dust attacks, the overall stability and throughput improvements have made mainnet viable again. Engineering efforts are now 80% focused on ENSv2 core features rather than maintaining a custom blockchain.
This move signals a potential trend reversal. For a long time, the narrative was that everything must move to a Layer 2 to survive. ENS staying put suggests that L1 scaling is finally catching up.
While institutional interest returns to Ethereum, projects are realizing that security and simplicity on the mainnet might outweigh the benefits of launching their own chains.
ENS confirms the protocol will remain highly interoperable with existing L2s like Optimism and Arbitrum, ensuring users across the ecosystem are still supported.
EXPLORE: 9+ Best High-Risk, High-Reward Crypto to Buy in 2026
Ethereum Price Analysis: From Forced Sales to Smart Money Loading Up
(Source: TradingView)
Ethereum price trades around $2,066, stabilising after a volatile week that saw dips toward $1,750–$1,800 before rebounding the $2,000 psychological level.
On-chain signals are mixed but telling: Lookonchain tracked heavy selling, including Trend Research depositing their final 651k ETH ($1.34B), realizing approximately $747M losses after near-total liquidation amid margin pressure.
Yet counter-trends emerge: Whales are accumulating aggressively. Recent examples include one withdrawing 60k ETH ($126M) from Binance over 30 hours.
Short-term, resistance at $2,100–$2,150; a breakout could eye $2,300+. Support near $2,000 holds firm for now, with possible retest of the $1,750 level and $1,550 in a bearish case scenario.
DISCOVER:
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2026 Stock Market Crash: 155 Years of Data Say ‘It’s Coming’
S&P 500 is on a historic streak—historically bad. Midterm years since 1957 average 18% drawdowns, corrections in 70% of cycles.
This time Trump’s tariffs are torching trade, margins, and supply chains simultaneously. The usual midterm carnage with extra accelerant.
What we’re dealing with is:
- S&P 500 forward P/E at 22 (matching dot-com bubble levels)
- Midterm election years see median 19% drawdowns
- Trump’s tariffs are crushing GDP growth
DISCOVER: 20+ Next Crypto to Explode in 2026
Vietnam Proposes 0.1% Crypto Transfer Tax in Pilot Regime
Vietnam’s Ministry of Finance has released draft rules imposing a 0.1% personal income tax on the value of each cryptocurrency transfer made by individuals (residents and non-residents alike) via licensed platforms. Crypto trades and transfers remain exempt from VAT, mirroring Vietnam’s stock trading tax treatment.
Corporate entities face a 20% corporate income tax on profits from digital asset activities, after deducting costs.
Exchanges must meet steep requirements: minimum capital of ~$408 million (10 trillion VND), foreign ownership capped at 49%, targeting institutional-grade operators.
The measures form part of a five-year crypto pilot program launched in September 2025, with licensing applications open since January 2026, aiming to regulate the previously gray-market sector and generate formal tax revenue.
Hypeliquid FUD in 2026? Kyle Samani Needs to Read The Room
After this disastrous start to February, fudding Hyperliquid is not the move. So when ex-Multicoin partner Kyle Samani dropped this take on X
Hyperliquid embodies everything wrong with crypto
degens didn’t let it slide.
The community framed it as salty ex-VC cope: either he missed the alpha or is still hurting from SOL treasury Ls. Arthur Hayes even threw down a $100K charity bet on HYPE outperforming big alts through July.
Meanwhile, HYPE holds strong around $32, +2% in the last 24 hours, while the rest of the market is losing some of the positive momentum after Bitcoin’s crash to $60K. Hyperliquid’s perp volumes exploded (record OI near $1B, daily flows crushing CEXs).
Vitalik Buterin: True DeFi Requires Reducing Counterparty Risk Beyond USDC Yields
Ethereum co-founder Vitalik Buterin weighed in on DeFi’s core, responding to claims that decentralised finance offers little beyond leveraged crypto positions and self-custody.
He argued that simply lending USDC on platforms like Aave does not qualify as genuine DeFi, as it retains significant counterparty risk tied to centralized stablecoin issuers.
Buterin highlighted algorithmic stablecoins as a promising path forward. He outlined two scenarios where they deliver meaningful innovation:
- ETH-backed systems allowing users to shift counterparty risk to markets;
- Overcollateralized, diversified real-world asset (RWA) backing that withstands single-asset failures.
He advocated prioritising decentralised, risk-minimising designs, ideally moving beyond dollar-pegged assets toward diverse indexes, to fulfil DeFi’s potential for resilient, trust-minimised financial services.
> inb4 "muh USDC yield", that's not DeFi
Would algorithmic stablecoins fall under this?
IMO no (ie. algorithmic stablecoins are genuine defi)
Easy mode answer: if we had a good ETH-backed algorithmic stablecoin, then *even if* 99% of the liquidity is backed by CDP holders who…
— vitalik.eth (@VitalikButerin) February 8, 2026
Binance SAFU Fund Accelerates $1B Bitcoin Reserve Plan, Now 73% Complete
Binance’s Secure Asset Fund for Users (SAFU) has purchased another 4,225 Bitcoin worth approximately $299.6 million, increasing its total holdings to 10,455 BTC: valued at roughly $734 million at current market prices.
The acquisition advances Binance’s January 2026 announcement to convert $1 billion in stablecoin reserves into Bitcoin within 30 days.
The Bitcoin reserve plan is now approximately 73.4% complete, with an average purchase price of $70,213.68 per BTC and an unrealized profit of about $3.41 million.
The post Crypto News Today, February 9 – ENS Abandons Namechain L2 Plan As Ethereum Price Holds $2K appeared first on 99Bitcoins.
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